diff --git a/packages/SystemUI/src/com/android/systemui/statusbar/phone/CentralSurfacesImpl.java b/packages/SystemUI/src/com/android/systemui/statusbar/phone/CentralSurfacesImpl.java
index 333f6b9cadb2a..ee45c42b74fc6 100644
--- a/packages/SystemUI/src/com/android/systemui/statusbar/phone/CentralSurfacesImpl.java
+++ b/packages/SystemUI/src/com/android/systemui/statusbar/phone/CentralSurfacesImpl.java
@@ -1105,7 +1105,6 @@ public class CentralSurfacesImpl extends CoreStartable implements
                     isFolded, willGoToSleep, isShadeOpen, leaveOpen));
         }
         if (leaveOpen) {
-            mStatusBarStateController.setLeaveOpenOnKeyguardHide(true);
             if (mKeyguardStateController.isShowing()) {
                 // When device state changes on keyguard we don't want to keep the state of
                 // the shade and instead we open clean state of keyguard with shade closed.
@@ -1114,6 +1113,9 @@ public class CentralSurfacesImpl extends CoreStartable implements
                 // expanded. To prevent that we can close QS which resets QS and some parts of
                 // the shade to its default state. Read more in b/201537421
                 mCloseQsBeforeScreenOff = true;
+            } else {
+                // below makes shade stay open when going from folded to unfolded
+                mStatusBarStateController.setLeaveOpenOnKeyguardHide(true);
             }
         }
     }
diff --git a/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/CentralSurfacesImplTest.java b/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/CentralSurfacesImplTest.java
index 2a3509ce3a2cf..7b7f45a446154 100644
--- a/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/CentralSurfacesImplTest.java
+++ b/packages/SystemUI/tests/src/com/android/systemui/statusbar/phone/CentralSurfacesImplTest.java
@@ -965,6 +965,7 @@ public class CentralSurfacesImplTest extends SysuiTestCase {
 
     @Test
     public void deviceStateChange_unfolded_shadeOpen_setsLeaveOpenOnKeyguardHide() {
+        when(mKeyguardStateController.isShowing()).thenReturn(false);
         setFoldedStates(FOLD_STATE_FOLDED);
         setGoToSleepStates(FOLD_STATE_FOLDED);
         when(mNotificationPanelViewController.isFullyExpanded()).thenReturn(true);
@@ -974,6 +975,19 @@ public class CentralSurfacesImplTest extends SysuiTestCase {
         verify(mStatusBarStateController).setLeaveOpenOnKeyguardHide(true);
     }
 
+    @Test
+    public void deviceStateChange_unfolded_shadeOpen_onKeyguard_doesNotSetLeaveOpenOnKeyguardHide() {
+        when(mKeyguardStateController.isShowing()).thenReturn(true);
+        setFoldedStates(FOLD_STATE_FOLDED);
+        setGoToSleepStates(FOLD_STATE_FOLDED);
+        when(mNotificationPanelViewController.isFullyExpanded()).thenReturn(true);
+
+        setDeviceState(FOLD_STATE_UNFOLDED);
+
+        verify(mStatusBarStateController, never()).setLeaveOpenOnKeyguardHide(true);
+    }
+
+
     @Test
     public void deviceStateChange_unfolded_shadeClose_doesNotSetLeaveOpenOnKeyguardHide() {
         setFoldedStates(FOLD_STATE_FOLDED);